According to advanced figures for Natural Gas futures markets from CME Group, open interest went up for the third session in a row on Tuesday, now by around 5.7K contracts. On the other hand, volume shrunk by nearly 11K contracts following two builds in a row.
Natural Gas Prices: Scope for further losses
Natural Gas prices dropped further and recorded new monthly lows just below the $1,67 level during early trade on Wednesday. Increasing open interest amidst lower prices paves the way for extra losses in the very near-term.
On the broader scenario, if the selling pressure gathers pace, YTD lows in the sub-$1.60 region could emerge as the next relevant contention, while any serious recovery is expected to meet interim hurdle at the 100-day SMA at $1.845 and the 55-day SMA at $1.876, all ahead of monthly tops in the $1.90 neighbourhood.
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